Saving for retirement is a subject that can consume a great many people.
How much is enough? What do you need to do to get there? What needs to happen for you to be ready?
With so much up in the air, the task of being ready to retire on time and not be forced to work late into your life can seem overwhelming. Fortunately, most Americans have a crucial tool at their disposal: their 401k.
The 401k is a savings plan that allows you to sock away money without having to pay taxes on it and then let it grow through investments, using compound interest to turn even the most modest savings into something much more substantial.
So what are the best ways to make your 401k work for you?
- Get out of debt so you can start hitting 401k contribution limits.
- Find a way to start building your emergency fund.
- Find creative ways to save a little everyday and contribute to your 401k.
- Take advantage of the gift of time and start investing now, even if it’s just a small amount.
- Track and monitor your 401k on your computer, but never depend on it to determine our plan.
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